From the archive, 20 October 1970: BP finds big oilfield in the North Sea

British Petroleum, in which the Government has a 49 per cent stake, has discovered a big oilfield in the British sector of the North Sea, 110 miles east of Aberdeen. This is the first major discovery of oil in British waters, and although present evidence must, of necessity, be tentative, it looks as though it will be commercially exploitable.

BP's announcement last night could be the prelude to a new industrial era for Britain, making her less dependent on overseas oil supplies. But it will obviously be some time before the full extent of North Sea oil reserves can be evaluated.

No one will know for certain how much oil BP has discovered until further drilling has taken place. The most conservative estimate last night was that the find could provide more than 3 per cent of Britain's requirements of 98 million tons a year but it was admitted that it could be a great deal more than this. And, of course, there is the probability of further strikes.

The group announced last night that oil from its discovery was tested at the rate of 4,700 barrels a day, which is good by world standards.

Rumours about the extent of BP's discovery have been circulating for over a week since the "Guardian" reported that the group had discovered traces of oil and gas. The well has been tested at roughly the same rate as the find made by the American Phillips group in Norwegian waters, which has since been confirmed as a large field.

The BP statement said the find had been made in 350 feet of water by the group's semi-submersible drilling barge, Sea Quest, which would now move to drill another well off Scotland on a previously negotiated contract.

Even if BP's find were not exploitable in its own right, it could still be developed if the Phillips group decided to bring its oil ashore to Britain rather than Norway or Germany. Phillips is at present talking with the British Government on the delicate question of investment grants. The existence of investment grants, which the Government is pledged to change to tax-related incentives, could be crucial in deciding whether the Phillips oil is piped to Britain.

If, as is highly likely, the BP discovery is proved commercial, it could mean that several other discoveries in the area which have not justified development by themselves would be worth exploiting if fed into a BP pipeline. Discoveries by Shell/Esso and the Gas Council/Amoco groups could fall into this category, in addition to a significant, but as yet unevaluated, find made in British waters by Phillips.

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